Siemens Layoffs

Cutting out the Flab

Joe Kaeser standing at pres conference dpa
Joe Kaeser is not actually clearing his chair, but those of more than 7,000 others.
  • Why it matters

    Why it matters

    Siemens needs to deliver on its promise to become more profitable in competition with rivals.

  • Facts

    Facts

    • Siemens will cut 7,800 jobs worldwide, or about 2 percent of total staff employed at continuing operations.
    • Europe’s biggest engineering company wants to cut costs by €1 billion by cutting management layers.
    • The company based in Munich presented mixed results last week, reporting a 25 percent quarterly profit drop to €1.1 billion.
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    Audio

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German engineering giant Siemens will reduce its global workforce of 343,000 by about 2.3 percent through  management and administrative cuts, the company said in a statement on Friday. Some 3,300 jobs will disappear in Germany.

The measure will deliver about €1 billion, or $1.1 billion, in savings by the end of 2016, with that money to be reinvested in sales, research and new plant equipment, Siemens said. Due to the reinvestments, the total number of employees is expected to remain stable, it said.

Since taking over as chief executive in August 2013, Joe Kaeser has been pursuing a restructuring program, called, “Vision 2020,” to increase profitability and sales in a move to keep up with its rivals, including General Electric.

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